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Estimating Cost of Debt Capital Assume that a company's financial statements report that its average outstanding debt totals $1.5 billion, and its total interest expense

image text in transcribed Estimating Cost of Debt Capital Assume that a company's financial statements report that its average outstanding debt totals $1.5 billion, and its total interest expense equals $120 million. If its tax rate is 35%, compute its cost of debt capital. Round answer to two decimal places (ex: 0.02345=2.35% ) \%

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